Student Loan Forgiveness Under IBR Paused Amid System Overhaul, But Not Canceled

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The U.S. Department of Education has confirmed a temporary pause in processing student loan forgiveness for borrowers enrolled in the Income-Based Repayment (IBR) plan, sparking concern among millions nearing their forgiveness milestones.

However, federal officials have reassured the public that the forgiveness provision under IBR remains legally intact and has not been canceled.

The pause, which affects over 2 million borrowers, stems from ongoing system updates intended to improve the tracking of qualifying payments under various income-driven repayment (IDR) plans.

The Department cited the need to upgrade internal infrastructure and ensure accurate application of forgiveness criteria before processing further discharges.

IBR Forgiveness Still Available

Despite the delay, student loan forgiveness under IBR — a program established by Congress — continues to be legally authorized. Borrowers with eligible federal student loans may still receive forgiveness after:

• 20 years of qualifying payments for those who borrowed on or after July 1, 2014

• 25 years for borrowers with loans disbursed before that date

The IBR plan adjusts monthly payments based on income and family size, offering long-term relief to those with high student debt burdens. Forgiveness is granted after the appropriate repayment term has been completed, provided borrowers remain in good standing.

Impact of the Pause

While the forgiveness program has not been dismantled, affected borrowers may notice delays in debt cancellation and, in some cases, continued monthly payment requirements.

Department officials have indicated that once the system updates are complete, any overpayments made during the pause will be retroactively refunded.

“This is a necessary and temporary step to ensure the integrity and accuracy of our IDR tracking and forgiveness systems,” said a spokesperson for the Department of Education.

“Borrowers will not lose their eligibility, and no one will be penalized for delays outside their control.”

Legal Context and Broader Implications

The recent legal challenges that halted other IDR plans — including SAVE, PAYE, and ICR — have not impacted IBR, which is codified in federal law and cannot be overturned by executive action or litigation alone.

Nevertheless, the current pause adds to growing borrower uncertainty amid a volatile policy environment for student debt relief.

Advocates are calling on the Department to accelerate its system improvements and enhance transparency regarding timelines and borrower expectations.

“This pause underscores the urgent need for a modern, borrower-friendly loan servicing infrastructure,” said Maya Lewis, a senior policy analyst at the National Student Debt Coalition.

“We applaud the Department’s commitment to accuracy, but borrowers who’ve made faithful payments for decades deserve timely relief.”

What Borrowers Should Do Now

Officials recommend that borrowers remain enrolled in IBR and continue tracking their payment histories closely.

Those approaching the 20- or 25-year forgiveness mark should not switch to alternative plans during the pause, as doing so may reset their progress.

Borrowers are also encouraged to monitor updates from the Department of Education and loan servicers for announcements regarding the resumption of forgiveness processing.

Bottom Line: Student loan forgiveness under the IBR plan is not canceled, but processing is temporarily paused to allow for necessary system upgrades.

Borrowers who have met the required number of payments will still be eligible for forgiveness once the Department resumes operations.

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